Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Detail Review –
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Detail is set to open from 25th Oct 2024 to 29th Oct 2024. In this article we will analyze the financials , strengths and weaknesses of the Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO). Keep scrolling below to read more!
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Overview –
Established in 1959, Afcons Infrastructure Limited is an infrastructure engineering and construction company of the Shapoorji Pallonji group, with a legacy of over six decades.
As of September 30 2023, the company has completed 76 projects across 15 countries with a total historic executed contract value of Rs 522.20 billion.
As of September 30, 2023, the company has 67 active projects across 13 countries, totaling an order book of Rs 348.88 billion.
The company is globally present in Asia, Africa and Middle East.
The company has five major infrastructure business verticals
- Marine and industrial projects include covering ports, harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks, and material handling systems.
- Surface transport projects cover highways, roads, interchanges, mining-related infrastructure, and railways.
- Urban infrastructure projects include elevated and underground metro works, bridges, flyovers, and elevated corridors.
- Hydro and underground projects cover dams, barrages, tunnels (including large road tunnels), and underground works, water, and irrigation.
- Oil and gas projects cover both offshore and onshore oil and gas projects.
Competitive Strength
- Strong Track Record of Timely Execution of Large-Scale, Complex and High-Value Projects
- Diversified Order Book across Geographies, Clients, and Business Verticals, Longstanding Relationships with Clients Globally, and Strong Financial Performance.
- Collaboration among internal teams, JV counterparties, and a strategic equipment base, leading to strong execution capabilities.
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Synopsis-
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) is set to be open from 25th Oct 2024 to 29th Oct 2024, offering combination of fresh issue of 2.7 crore shares aggregating to Rs 1,250.00 crores and offer for sale of 9.03 crore shares aggregating to Rs 4,180.00 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Monday, November 4, 2024.
The total issue size of this IPO amounts to Rs. 5,430.00 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 25th Oct 2024 |
| Closing Date | 29th Oct 2024 |
| Lot Size | 32 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 5,430 Cr |
| Fresh Issue | Rs. 1,250 Cr |
| IPO Price Range | Rs. 440 – 463 |
| Min. Investment | Rs. 14,816 |
| Offer for Sale (OFS) | Rs. 4,180.00 Cr |
| Employee Discount | Rs 44 per share |
| Basis of Allotment | 30th Oct 2024 |
| Refunds | 31st Oct 2024 |
| Listing Date | 4th Nov 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Market Lot
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) minimum market lot is 32 shares with ₹14,816 application amount. The retail investors can apply up to 13 lots with 416 shares or ₹192,608 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 32 | ₹14,816 |
| Retail Maximum | 13 | 416 | ₹192,608 |
| S-HNI Minimum | 14 | 448 | ₹207,424 |
| S-HNI Maximum | 67 | 2,144 | ₹992,672 |
| B-HNI Minimum | 68 | 2,176 | ₹1,007,488 |
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Book Running Lead Managers –
- ICICI Securities Limited
- DAM Capital Advisors Limited
- Jefferies India Private Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- Nuvama Wealth Management Limited
- SBI Capital Markets Limited
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Registrar to the offer –
The registrar for the Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Capital expenditure towards purchase of construction equipment
- Funding long term working capital requirements
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the Company
- General corporate purpose
Key Performance Indicator –
The market capitalization of Afcons Infrastructure Limited is Rs 17026.18 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 13.28% |
| ROCE: | 20.18% |
| EBITDA Margin: | 11.60% |
| PAT Margin: | 3.30% |
| Debt to equity ratio: | – |
| Earning Per Share (EPS): | ₹13.20 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 12.58% |
| Net Asset Value (NAV): | ₹104.92 |
Financial Status –
Afcons Infrastructure Limited’s revenue increased by 6% and profit after tax (PAT) rose by 9% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The company’s total assets are Rs. 11,313.73 crore.
The company’s total revenue is Rs. 11,632.76 crore.
The company’s PAT is Rs. 1,274.38 crore.
The company’s net worth is Rs. 4,074.84 crore
| Particulars(in Rs. Crores) | 30 June 2024 | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|---|
| Revenue From Operations | 3,213.47 | 13,646.88 | 12,844.09 | 11,269.55 |
| PAT | 91.59 | 449.76 | 410.86 | 357.61 |
| Net Worth | 3,662.25 | 3,575.05 | 3,155.06 | 2,691.03 |
| Total Assets | 17,184.58 | 16,233.64 | 14,301.25 | 12,973.77 |
| Total Borrowings | 3,365.1 | 2,455 | 1,562.82 | 1,555.2 |
Financial Highlights
- Revenue Growth: The company has consistently increased its revenue over the past three years, indicating strong growth and market penetration.
- Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
- Asset Growth: The company has invested in assets, as evidenced by the increase in total assets over the three years.
- Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
- Debt: Total borrowing has increased, but it remains at a manageable level.
Evaluation of P/E Ratio :
The P/E Ratio of Afcons Infrastructure Limited is 35.08
Peers of Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) –
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|
| Afcons Infrastructure Limited | 13.2 | 92.59 | 12.58 | Consolidated | ||
| Larsen & Toubro Ltd. | 93.96 | 623.15 | 37.14 | 15.24 | 5.6 | Consolidated |
| Kec International Ltd.` | 13.49 | 155.32 | 74.67 | 8.68 | 6.5 | Consolidated |
| Kalpataru Projects International Limited | 31.37 | 308.36 | 42.2 | 10.17 | 4.3 | Consolidated |
| Dilip Buildcon Ltd | 13.75 | 298.85 | 37.63 | 4.44 | 1.68 | Consolidated |
Dividend Policy
Dividend | FY 2024 | FY 2023 |
Dividend (Rs.) | 323.30 | 287.88 |
Dividend per Equity Share (Rs.) | 2.5 | 4 |
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Strengths –
A proven track record of completing complex, large-scale, and high-value projects on time.
Strong financial performance, a diversified order book across business verticals, clients, and geographies, as well as enduring client relationships worldwide.
Co-operation between internal teams and their joint venture partners, as well as a strategic equipment base that results in powerful execution capabilities.
Practices of knowledge management and innovation.
Professional leadership group with ancestry from the Shapoorji Pallonji Group.
Robust risk management, dispute resolution, and project selection procedures.
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Weakness –
The company is heavily reliant on contracts from the Government or clients who are Government-owned, which exposes the company to several dangers.
The company might not get paid if any of its projects are terminated, which could harm its business flow.
The project completion cost may differ significantly from the estimates included in its bid. Its financial situation, operational performance, and cash flows could all suffer if the company is unable to recoup all or a portion of the higher costs.
It relies heavily on contract labour, so its business may suffer if it is unable to obtain contract labor at fair prices at the project locations.
In the previous fiscal years, it had negative cash flows from investing activities. Constant negative cash flows could affect its cash flow needs.
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) Status
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) allotment status will be available on Link Intime India Private Limited.
Click on Link Intime India Private Limited. to get allotment status.
Afcons Infrastructure Limited IPO (Afcons Infrastructure IPO) GMP Today –
IPO’s last GMP is ₹75, last updated 24th Oct 2024. With the price band of 463.00, IPO’s estimated listing price is ₹538(cap price + today’s GMP). The expected percentage gain/loss per share is 16.20%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Disclaimer:
- IPO Grey Market Premium (Afcons Infrastructure IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
